Effect this measure will have on costs and revenues of state government.

The purpose of this bill is to create a random drug testing program for applicants and recipients of temporary assistance for needy families cash benefits and for elected officials. Any applicant or recipient who fails an initial drug test will be required to pass a second drug test in the following thirty to sixty days to maintain eligibility for or recipients of such benefits. Failing the secondary drug test results in ineligibility for benefit for a period of two years, and requires a mandatory drug test as part of a reapplication of benefits. Legislators shall be required to submit to drug testing. Any legislator who fails two consecutive drug tests must forfeit all pay and allowances.
The proposed legislation does not define the percentage of the recipient population that will be randomly drug tested or the frequency the testing is to occur. Therefore, the estimated fiscal impact on the Department of $156,630 is based on a scenario of testing 20% of TANF caseloads and 134 members of the Legislature.
The proposed legislation does not clarify the fiscal responsibility of the drug treatment program that the applicant/recipient is eligible to enroll in as to not be denied benefits. The estimated costs for an Intensive Outpatient Program lasting 6 weeks (minimum of 30 days of treatment) is $4,500/person.

Fiscal Note Detail

Over-all effect

Effect of Proposal

Fiscal Year

2011Increase/Decrease(use"-")

2012Increase/Decrease(use"-")

Fiscal Year(Upon FullImplementation)

1. Estmated Total Cost

0

156,630

156,630

Personal Services

0

0

0

Current Expenses

0

156,630

156,630

Repairs and Alterations

0

0

0

Assets

0

0

0

Other

0

0

0

2. Estimated Total Revenues

0

0

0

3. Explanation of above estimates (including long-range effect):

The Department's Bureau for Children and Families (BCF) would be involved with the drug testing related to the welfare (TANF) program. In January 2011 there were 12,366 TANF cases. Testing on 20% of this population would be 2,473. The current contract BCF has with HRS, Inc. is $57.50/drug test. The bill states if a person fails the initial test, a second test will be required. This is based on existing case loads and does not include any amount for new applicants. Utilizing a fail rate of 4.5%, an additional 111 tests would be required. Therefore, the cost would be ((2,473 +111) x 57.50) = $148,580.
Additionally, there are 134 members of the Legislature. With the same fail rate of 4.5%, an additional 6 tests would be required. Therefore, the cost would be ((134+6) x 57.50) = $8,050.
The fail rate of 4.5% of TANF recipients is based on illicit drug use data from the 1998 National Household Survey on Drug Abuse.

Memorandum

A similar law was found Unconstitutional by a federal appeals court in Michigan.
Technical Flaw - proposed legislation refers to the "Commissioner of the Division of Human Services". The organizational structure of the Department is that of a department level Secretary (Secretary of the Department of Health and Human Resources) and Commissioners of Bureaus, including the Bureau for Children and Families (the bureau that administers the TANF program).